ECB's Trichet Wants More Eurozone Power Over States

 @ibtimes
on October 24 2011 12:49 PM

Eurozone authorities should in future have greater powers to influence the economic policies of countries in the bloc if a member persistently fails to meet economic targets, ECB President Jean-Claude Trichet said on Monday.

In a speech entitled Tomorrow and the day after Tomorrow: A Vision for Europe, the outgoing European Central Bank president said euro zone states should examine all aspects of each others' economic policies.

A second stage should be envisaged for a country that persistently fails to meet its program targets, he added.

Under this second stage, euro area authorities would gain a much deeper and more authoritative role in the formulation of that country's economic policies, he said. Implementing this idea of the second stage would evidently require a Treaty change. It would also imply a new concept of sovereignty.

(Reporting by Paul Carrel and Annika Breidthardt)

 

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